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One thing to keep in mind is that you might not have until next April 15th to pay your taxes after exercise. If the exercise benefit is large enough compared to
by scurvy 11y ago
One thing to keep in mind is that you might not have until next April 15th to pay your taxes after exercise. If the exercise benefit is large enough compared to your typical income, you might owe estimated taxes that quarter.
- ryporter 11y agoThis is a great point. Additionally, you're fine if you pay 110% of your prior year's tax bill. For most employees referred to in this article, this amount should be payable.
- throwaway_exer 11y agoThe IRS will say that you "owe" quarterly, but there's no penalty for not doing so.
- scurvy 11y agoIt's a 3% penalty on the difference between what you owe and what you've paid. It's a pretty minor amount, but there is a penalty. http://www.inman.com/2012/06/08/dont-sweat-quarterly-tax-deadline/ http://www.inman.com/2012/06/08/dont-sweat-quarterly-tax-dea...
- phamilton 11y agoIf the difference is less than $1000 or if you withheld more this year than you owed last year or if you withheld 90% of your total bill, there is no penalty.